Going back in time ...2002-2003

ravenk

Hi,
A question on behalf of my father in law.
I know it's going back a while ....but maybe someone grey like me can help ....50 and feeling old as I consider Saga car insurance :-)

On subject ...
Tax year 2002-2003
Income from employment £43,000 approx and pays some tax at higher tax rate of 40% (lower rate was 23% I think).
Also has savings income of £12,500 approx.
Would the tax rate for this be 20% lower rate until it hits the upper rate of 40% ...or is it added to income and thus all at 40% rate ?

I'm not sure what the rules were on tax on savings income in 2002-2003 tax year.

Thanks in advance for any replies.

nomunnofun

Personal allowance first.
Then tax at 10% on 1920 of earnings.
Then 27980 at 22% on earnings.
40% of everything after that.

Certainly savings and dividend income was always charged at highest rates.

Not much that you can do about any errors now though!

ravenk

Thanks for the reply.
So your saying that for year 2002-2003 any savings income would be added to income from employment and thus taxed at 40% , if your employment income pushed you into the higher tax bracket.
Thus for a situation (Mother in law) who's employment income was under £10,000 approx and savings income was £12,500 she would pay 20% tax on the savings income ?

This is all very confusing :-)

longforgotten

Not much that you can do about any errors now though!

How far back can we go with regard to tax now then, whether claiming tax back or indeed paying up . How about four years..........?

nomunnofun

ravenk wrote: »

Thanks for the reply.
So your saying that for year 2002-2003 any savings income would be added to income from employment and thus taxed at 40% , if your employment income pushed you into the higher tax bracket.
Thus for a situation (Mother in law) who's employment income was under £10,000 approx and savings income was £12,500 she would pay 20% tax on the savings income ?

This is all very confusing :-)

From memory - that is correct!

ravenk

I understand for errors the tax man made it's 7 years and for errors you have made via non disclosure ...it's for ever :-(
They could come knocking on your door 20 years after the event.
Well that's what I read somewhere.

nomunnofun

longforgotten wrote: »

How far back can we go with regard to tax now then, whether claiming tax back or indeed paying up . How about four years..........?

2009/10 is the earliest year that you can now claim for I believe - by 5th April 2014.

http://www.hmrc.gov.uk/about/paye-taxpayers.htm

nomunnofun

ravenk wrote: »

I understand for errors the tax man made it's 7 years .

No - that all changed in 2008 I believe!